2015 - A Transformational Year for Robix with a Goal of Profitability for 2016
LETHBRIDGE, ALBERTA--(Feb. 19, 2016) - Robix Alternative Fuels, Inc. ("Robix" or the "Company") (CSE:RZX) (FRANKFURT:R0X) is pleased to provide a shareholder update. The Company reported some significant milestone achievements in 2015. The full shareholder update is available on the home page of the Company's website at www.robixfuels.com.
On the product front, Robix completed the construction of the first C Series vessel, the C160. In November 2015, Robix demonstrated the C160 vessel in open water testing in Mexico. The C160 exceeded expectations in terms of its oil recovery performance and operation. Plans were put in place to complete independent 3rd party testing by local authorities to qualify the C Series for commercial sales in Mexico. This testing is scheduled for early 2016. Once completed the Company expects to begin negotiations for revenue from these units in Mexico under a business model of leasing them on a standby basis, with a separate fee charged through its JV partners once the equipment is deployed in an emergency situation. A number of customers have been identified and Robix will be working closely with its JV partners in Mexico to produce a sales order book. Elsewhere Robix will follow a similar model by finding established in-country environmental services groups with which to partner. Thereby Robix becomes the technology provider to established regional service providers to expand the reach of Robix products in each region. Near term targets include Canada, Mexico and the Middle East.
The P Series oil recovery platform was also launched during 2015. The P Series is designed to address the oil-production settling pond market. After meeting with a customer in Mexico, Robix identified a need to accelerate the time it takes for effluent oil to be recovered from settling ponds and processed into "refinery-ready" crude oil. By applying the core technology and design principals of the C Series Robix created a new product that is designed to cost effectively recover oil in a settling pond environment, effectively improving the customer's bottom line while reducing impact on the local environment. The first model is the P140 and has an oil recovery rate of 140 m3/hr. To date Robix has received technical and legal approvals from its customer, Pemex, with budgetary approval expected in early 2016. The business model is to own and operate these units and lease them on a monthly fee basis through Joint Venture agreements, with Robix as the technology provider, and the JV partner as operator. Many production facilities have settling ponds to handle effluent oil and the P Series is the ideal solution for these customers. Robix is in active discussions with a number of customers in North America and the Middle East.
On the marketing front, Robix established multiple joint venture partnerships in Mexico through its Corris subsidiary managed by Karla Alva-Jorstad. In 2015 the Company made the corporate decision to focus its near-term sales and marketing efforts geographically on Mexico, Canada and the Middle East. During the year Robix formed a wholly owned subsidiary Corris Technologies Mexico S.A. de C.V. (Corris), which is managed by Karla Alva of Alva, O'Driscoll & Associados, S.C. Through Corris, Robix formed two very significant JV partnerships in Mexico, the first being Petrolmeca S.A. de C.V. (Petrolmeca). Petrolmeca maintains a permanent staff of 33 specialists in multiple engineering disciplines with a focus on the Tabasco State in Mexico. Since their inception, they have successfully developed several projects for Pemex both onshore and offshore. It is through this partnership that Robix was first introduced to Pemex. Petrolmeca has been instrumental in introducing the C Series product to Pemex and the subsequent development of the P Series for Pemex.
Building on the success with the Petrolmeca relationship, Corris entered into another JV Partnership agreement with Grupo Macomax S.A. de C.V. in Mexico. Grupo Macomax is a Mexican Corporation that offers solutions to environmental emergencies in the whole Mexican territory. Grupo Macomax is currently in discussion with Pemex in other regions of Mexico on both the C Series and the P Series. At this juncture it is worthy of noting that Robix has succeeded in penetrating the Mexican market with products in relatively short timeframe, primarily due to the support and diligence of Karla Alva-Jorstad.
Finding complementary technologies and like-minded companies was also a critical part of the strategy in 2015 with a goal of positioning Robix as a leader in clean tech oil spill recovery technology. In addition to the JV Partnerships, Robix entered into two important mutual marketing relationships with Canadian Floating Fence Ltd. (CFFC) and M.E.R.V Marine Limited (MML). Accordingly in October 2015, Robix signed a Joint Marketing Agreement with CFFC, a private Canadian Corporation based in Calgary, Alberta. CFFC is the developer, intellectual property owner and manufacturer of XBOOM® Floating Fence and associated XBOOM® gear. The XBOOM® is a complementary product to Robix C Series and P Series product lines. When used in conjunction with Robix products, the XBOOM® contains and traps oil and directs it toward the contra rotating drums of the Robix C or P Series units, improving oil recovery efficiencies.
Also during the 2015 year, Robix signed a Memorandum of Understanding ("MOU") with MML, to co-distribute each other's products in each other's territory. Both parties will market and sell the Robix C Series clean ocean vessels on a worldwide basis, except in Mexico (where Robix already has an exclusive agreement in place) and Robix will market the MML Marine Emergency Response Vessel (MERV) on a worldwide basis, except in Australia (where MML already has an exclusive agreement in place). MML is an established Australian based Research and Development company focused on emergency and marine needs. The MERV is a multi-purpose workboat with optional modules for most of the clean-up needs in a marina, port and ocean with specific models for oil rigs and oil tankers. The MERV is a perfect vessel to tow the Robix C Series as its multiple modules make it multipurpose and more functional than a tug boat or other towing vessel.
Looking forward, 2016 is expected to be an exciting year of growth for Robix.
"I am confident that the product development, product demonstration, JV partnerships and marketing relationships that were established in 2015 will bear much fruit in 2016," commented Nathan Hansen, President and CEO of Robix. "Delivery of our first commercial unit (the C160) to Mexico was a significant event for 2015. Environmental technologies are the pathway of the future and Robix is well positioned to take advantage of this emerging growth sector. Assuming we continue to see market traction for our C and P Series product lines, I am confident in our ability to generate revenue and profit in 2016. This would make our efforts in 2015 truly transformational for the company and you - our valued shareholders."
About Robix Alternative Fuels
The Corporation is an "industrial products/technology" company, which has developed an oil spill recovery vessel with the capability to recover oil not only in rough and debris laden sea conditions but also in more contained environments such as lakes, rivers and tailings ponds. Robix has recognized a worldwide market opportunity for effective containment, recovery and disposal equipment, particularly in the oil spill protection industry. The business model is focused on Robix becoming a large-scale provider of services and/or equipment under licensing arrangements with other industry participants, wherein Robix will use its patented design solution.
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This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Robix Alternative Fuels Inc.
President & CEO
Robix Alternative Fuels Inc.
Chief Financial Officer